SEC to Reject Ethereum ETFs by May, Predicts VanEck CEO

Investors eagerly awaiting Ethereum exchange-traded funds (ETFs) in the United States may find their hopes dashed, as Jan Van Eck, CEO of VanEck investment firm, predicts impending rejection by the U.S. Securities and Exchange Commission (SEC). Amidst regulatory silence, Van Eck’s recent revelations highlight the challenges facing the cryptocurrency sector.

Van Eck’s Insights

In an interview with CNBC on April 9, Jan van Eck delivered sobering news for proponents of Ethereum ETFs, stating that his firm’s spot Ether ETF application will “probably be rejected.” This negative outlook comes amidst a prolonged period of regulatory inaction from the United States Securities and Exchange Commission (SEC) regarding pending Ethereum ETF applications.

VanEck, along with Cathie Wood’s ARK Invest, was among the first to file for spot Ether ETFs in the U.S., with final decisions scheduled for May 23 and May 24 respectively. 

The prevailing “radio silence” from the SEC has fueled doubts among commentators, with Senior Bloomberg ETF analyst Eric Balchunas lowering the odds of approval from 70% to 35%. Moreover, Fellow ETF analyst James Seyffart also expressed concern, stating that the lack of comments or interactions from the SEC is a negative indicator.

Read More: Spot Ethereum ETF: Analyst Identifies 3 Scenarios for ETH Price

Concern Over PoS

Meanwhile, the SEC’s acceptance of Bitcoin’s proof of work (PoW) protocol contrasts with concerns over Ethereum’s proof of stake (PoS). Unlike Bitcoin miners, Ethereum’s PoS participants stake tokens, raising regulatory hurdles for Ethereum ETF approval. 

“I don’t see anything getting approved this side of the year.”

CoinShare’s CEO Jean-Marie Mognetti

Success of Bitcoin ETFs

Despite the uncertainty surrounding Ethereum ETFs, VanEck’s spot Bitcoin ETF, trading under the ticker HODL, has witnessed significant success since its launch in mid-January. With an inflow of $461.7 million, it ranks among the top newly launched funds, highlighting the growing interest in Bitcoin among investors.

Also Read: Ethereum Price Post Spot ETF Approval: Surge or Fizzle?

Reflecting on Bitcoin’s success, Jan van Eck highlights its maturation as an asset. As regulatory uncertainty persists for Ethereum ETFs, industry insiders remain watchful of the SEC’s next steps.